European markets are anticipated to open slightly lower on Friday as investors await the crucial U.S. employment figures due later in the day. Analysts forecast a December job growth of approximately 155,000, a decline from November's increase of 227,000, with the unemployment rate expected to remain steady at 4.2 percent.
A robust jobs report may escalate concerns that the Federal Reserve might refrain from lowering interest rates this year. Current trading data of Fed funds futures indicate only a 7 percent likelihood of a quarter-point rate reduction at the impending policy meeting scheduled for later this month.
Asian markets are experiencing declines, influenced by the persistent uncertainty surrounding policies of the incoming Trump administration in the U.S. and potential growth challenges in China.
In Asian trading, U.S. Treasuries showed advancements, following remarks from several Fed officials suggesting that interest rates will likely hold steady for an extended timeframe.
Despite the People's Bank of China's decision to temporarily halt treasury bond purchases due to a limited bond supply, Chinese bond yields increased, and the yuan fell to a new 16-month low.
The dollar index remained relatively stable after experiencing gains over the past three days.
The British pound faced downward pressure, hitting its lowest level in over a year due to indications of rising borrowing costs and fiscal deficit concerns.
Similarly, the Japanese yen remained near multi-month lows amid skepticism over the timing of the Bank of Japan's next rate hike.
Despite the prevailing uncertainty regarding U.S. interest rates, gold showed an uptick and was on track for a weekly gain.
Oil prices were poised for a third consecutive weekly rise, with indications of declining U.S. inventories counterbalancing worries about demand from China.
On Thursday, European stocks generally closed higher, despite apprehensions about inflation and President Trump's tariff threats. Trading volumes were somewhat limited as U.S. markets were closed in observance of a day honoring former President Jimmy Carter.
The pan-European STOXX 600 rose by 0.4 percent. The U.K.'s FTSE 100 climbed 0.8 percent, France's CAC 40 saw an increase of 0.5 percent, while Germany's DAX experienced a slight decline.
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